UPS retracts driver buyout option in 13 states under union pressure

United Parcel Service has notified the Teamsters union that it will withdraw its $150,000 buyout program for parcel and linehaul drivers in 13 central states in response to strong protests from local union chiefs, complicating the company’s effort to eliminate 30,000 jobs as it downsizes its network amid a reduction in parcel volume. The International Brotherhood of Teamsters, which represents about 340,000 drivers and package handlers, contends that the voluntary separation agreements violate the September 2023 national contract because they undermine employment security guarantees and represent direct dealing by management with workers over changes to contract terms. A federal judge in February denied a request to block UPS (NYSE: UPS) from implementing the Driver Choice program. UPS has decided to pull its buyout offer in 13 states after 37 local unions in the Central Region filed grievances, through an approved process in the contract, demanding to be excluded from the program, the Teamsters said in a news release on Tuesday.